How to Get Rid of An HOA When You And Everyone Else Wants A Change
Sometimes an HOA can feel like more trouble than it's worth, and when your community agrees that enough is enough, you may want to know how to get rid of an HOA.
If your home is part of a homeowner’s association (HOA), it’s almost certain that you knew about the organization prior to purchasing the property. Aside from being a required disclosure in most states, HOA inclusion involves regular dues, so those costs are considered by lenders as part of the mortgage application process. Knowing about and agreeing to something, however, doesn’t always mean that all parties remain satisfied. Sometimes, an HOA can feel like more trouble than it’s worth, and when your community has decided that enough is enough, you may be wondering just how to get rid of an HOA.
In this article, we’re going to cover a few reasons why you may want to disband your HOA, and what action you should take.
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Why get rid of an HOA?
Common reasons why a neighborhood or multi-unit building may want to remove themselves from the control of an HOA essentially boil down to problems with management, finances, or other operational problems with the HOA.
Unfair CC&Rs
The covenants, conditions, and restrictions set forth by the HOA generally mandate how homes should be maintained and decorated.
This can involve regulation around details like styles of fencing, landscaping, and what types of vehicles (and how many) may be parked outside the property. When CC&Rs become restrictive to the point where homeowners feel that they are unable to make decisions about their own homes, tension can build.
Unreasonable dues
HOA fees vary widely depending on the type of housing development and services provided, but when residents feel as though the value of the HOA does not match the funds paid, frustration quickly grows.
Failing responsibilities
HOAs are meant to provide value to a community. Whether through enhanced security, beautified common areas, or concierge-style services, it’s understandable when folks become upset with an HOA that falls short on responsibilities to homeowners.
Abuse of power
If certain members of an HOA are taking their position on the board to an extreme, it’s only a matter of time until a community will be ready to speak up in protest.
But, buyer beware, it’s rare for an HOA to be dissolved, and the process can be very time-consuming and expensive.
“I don’t know that I’ve ever seen a situation where I thought an HOA would be better off coming out of existence,” says Ursula Burgess Esq., Director, Foundation for Community Association Research for the Community Associations Institute (CAI). “The better route is to figure out what the problem is and resolve that so the association can operate properly.”
Through her decades of community association legal work, Burgess has developed a threshold question when a homeowner raises the issue of dissolving an HOA. She asks, “Why is there a perception that the HOA ‘needs to go’?”
Burgess finds that the consternation usually boils down to one of two issues: “Either the current make-up of the board is less than ideal, or there’s a question of maintenance issues within the community, and people don’t want to pay.”
While folks may have limited interest in shelling out extra cash for unexpected repairs that may not affect their day-to-day quality of life — such as a leaky stairwell in a condominium building, or landscaping improvements to a neighborhood entrance — community living is all about looking at the big picture.
HOAs, after all, “really are meant to be there for good reasons,” says Burgess. “If they’re not operating properly, then we’ve just got to go in and fix them.”
Laying the groundwork
To make big changes, you’ll need to understand what you’re dealing with.
Regularly attending HOA meetings will help you become familiar with the board members, your neighbors, and any hot topics of discussion. Meetings are also your opportunity to raise concerns that can help avoid escalating a complaint to the point of legal action.
Additionally, you’ll need a thorough understanding of those CC&Rs we mentioned.
Be sure that you have the most up-to-date version of the regulations — including any additional documentation that may outline terms for dissolution — and review them carefully. Depending on your grievance, there may be verbiage that can offer ground to stand on to resolve the dispute.
“My mother lived in a townhome for some time, and the sewer line was backing up,” shares James Delgado, a top Santa Fe-based real estate agent with 22 years of experience.
The situation was unclear as to whether the HOA would be liable for the repair expense, or if that responsibility would fall to the homeowners. Knowing that covenants can sometimes be subject to interpretation, Delgado and his mother wrote a letter to the HOA to clarify.
“We ended up convincing them that the HOA should pay because it was a common area sewer line, and they did provide the $4,000 in funds to have it repaired,” he says, though the process wasn’t without effort.
Thus, it’s important to have an understanding of regulations and keep careful records. Meeting minutes, all direct communications with HOA board members, and even jotting down notes after a relevant conversation with neighbors can be helpful in constructing a timeline of a persistent problem.
